A US jury has ordered ride-hailing company Uber to pay $8.5 million (about Sh22 billion) in compensation after finding it liable in a lawsuit filed by a woman who said she was sexually assaulted by one of its drivers when she was 19.
The verdict, delivered on Thursday, could influence thousands of similar cases facing the company across the US.
The case, filed by Jaylynn Dean, was the first “bellwether” trial among more than 3,000 similar lawsuits consolidated in federal court. Bellwether trials are used to test legal arguments and help determine possible settlement values in large groups of cases.
A federal court jury in Phoenix, Arizona, ruled that the driver acted as an agent of Uber, making the company responsible for his actions. Dean was awarded $8.5 million in compensatory damages. The jury declined to award punitive damages, although her lawyers had sought more than $140 million.
Following the verdict, Uber’s shares fell by 1.5 percent in after-hours trading, while rival Lyft — which also faces similar lawsuits — dropped by 1.8 percent.
In a statement, an Uber spokesperson said the company plans to appeal the decision and noted that the jury rejected other claims that Uber was negligent or that its safety systems were defective.
“This verdict affirms that Uber acted responsibly and has invested meaningfully in rider safety,” the spokesperson said.
Dean’s attorney, Sarah London, said the decision validates thousands of survivors who have come forward seeking accountability from the company.
Dean, who lives in Oklahoma, filed the lawsuit in 2023, one month after the alleged assault in Arizona. She argued that Uber knew about reports of sexual assaults by drivers but failed to take basic steps to improve passenger safety.
During closing arguments, another lawyer for Dean, Alexandra Walsh, said Uber marketed itself as a safe option for women, especially at night or after drinking.
“Women know it's a dangerous world. We know about the risk of sexual assault,” Walsh said. “They made us believe that this was a place that was safe from that.”
Uber denies responsibility
Uber has long faced criticism over safety concerns, including claims of weak driver vetting and prioritising rapid growth over passenger protection.
The company argues it should not be held liable for criminal acts committed by drivers, saying they are independent contractors, not employees. It also says its background checks and safety disclosures are adequate.
During the trial, Uber’s lawyer Kim Bueno said the driver had no criminal record, had completed 10,000 trips and had a near-perfect passenger rating.
“Was this foreseeable to Uber? And the answer to that has to be no,” she said.
According to the lawsuit, Dean was intoxicated when she requested an Uber ride from her boyfriend’s home to her hotel. She alleged that the driver asked harassing questions, stopped the car and raped her.
The case was overseen by US District Judge Charles Breyer, who is handling all similar federal cases against Uber. The company is also facing more than 500 cases in California state court.
In one California case that went to trial, a jury sided with Uber, ruling that although the company had been negligent, that negligence was not a major factor in the woman’s harm.
Morningstar analyst Mark Giarelli said the ruling highlights the need for stronger background checks for ride-hailing and delivery platforms.
“This underscores the importance of robust background checks on convenience applications such as Uber, Lyft and DoorDash where there is interaction between customers and drivers,” he said.
